Here's What Jim Cramer Wishes Amgen Inc. (AMGN) Should Do To Its Drug That Hurts Like A "Banshee"

We recently published Jim Cramer Just Couldn’t Stop Talking About These 13 Stocks. Amgen Inc. (NASDAQ:AMGN) is one of the stocks Jim Cramer recently discussed.

Amgen Inc. (NASDAQ:AMGN) is one of the largest pharmaceutical companies in the world that makes treatments for a variety of ailments such as arthritis, heart problems, and anemia. The shares have gained 10.8% year-to-date on the back of several catalysts, such as positive data about its cancer drug. Cramer’s previous comments about the firm have called it a bargain due to excessive weakness stemming from a weight loss drug trial. This time, he commented on Amgen Inc. (NASDAQ:AMGN)’s coronary artery disease medicine and valuation:

“I take medicine, called Repatha, by the way, which is really good, it’s an Amgen medicine. It lowers cholesterol, and it’s said to be maybe removing plaque from your brain. You want that. But David. It hurts like you wouldn’t believe it, like a banshee. Like a banshee. I mean every Sunday, I’m like aaaaah, now maybe it’s because I’m sensitive. Kind of like your dial up, pssh khwuuum. . .and I wish it were [available in oral form] because boy it’s an amazing medication. I think I wish for Amgen, get than thing in a pill form, everybody in the world would be taking it. Stock’s at 285, sells at 13 times earnings, that’s crazy.”

Here is what Cramer said about Amgen Inc. (NASDAQ:AMGN)’s weight loss drug:

“Unlike Mounjaro or Ozempic, which needed to be injected once a week, Amgen’s MariTide is one shot per month. I prefer monthly over weekly when it comes to injections any day… So what did we learn when Amgen presented on Monday afternoon? First, the market didn’t like it. The stock sold off. Hard response… There… [was] some genuinely new information too. I’m talking about the Phase 1 trial, data from the separate trial, studying much lower starting doses of MariTide with different escalation schedules, far less vomiting at the low doses…

This is really important because it seems to go down easier when patients start at a lower dose and then ratchet up gradually. So what exactly does this mean for Amgen, the stock? Again, Wall Street was not impressed. When Amgen published this data on Monday afternoon, the stock dropped an incredible 15 points in just a few minutes, finishing the day down almost 6%. But over the past two days, the stock’s recovered a big chunk of the ground that was lost, so maybe there’s something good here…

My bigger concern, we may not see MariTide get FDA approval and make it to the market until late 2027 at best… Amgen’s very confident that their Phase 3 trial will be successful by the time 2027 comes along. Millions of people will probably be taking that Lily weight loss pill. That said, the stock… sold off to the point where I would not bet against it…

I don’t think that new MariTide data is bad enough to justify this decline. And now you’re getting a bargain. That’s right, Amgen’s at a bargain, basement price of 13 times earnings…. And while Lilly’s a great stock that certainly deserves a premium… I think Amgen’s gotten too cheap by comparison.

This is still a big biotech company with mid-single-digit earnings growth expected this year, not to mention potential upside for this GLP-1 drug down the road. But here’s the bottom line: We got plenty of data from this American Diabetes Association conference that ended earlier this week, and I think Amgen’s trial results were misunderstood. The stock did not deserve to get hit this hard. Lily’s still my favorite way to play the GLP-1 story. But if you’re looking for a bargain, you could do a lot worse than Amgen.”

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Disclosure: None. This article is originally published at Insider Monkey.